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Your company has eamings per share of $4. It has 1 million shares outstanding, each of which has a price of $24 You are thinking

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Your company has eamings per share of \$4. It has 1 million shares outstanding, each of which has a price of $24 You are thinking of buying TargetCo. Which has eamings per share of \$2, 1 million shares outstanding. and a price per share of $18 You will pay for TargetCo by issuing new shares. There afe. no expected synergies from the transaction. Complete parts a through d below. a. If you pay no premium to buy TargetCo, what will your earnings per share be after the merger? Your new earnings per share will be: (Round to the nearest cent) b. Suppose you offer an exchange ratio such that, at current pre-announcement share pnices for both firms, the offer represents a 25% premium to buy Targetco. What will your eamings per share be after the merger? Your new earnings per share will bes (Round to the nearest cent)

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